Did you know Moonpig was his nickname at school!?
Nick Jenkins has been on my radar ever since he started on BBC’s Dragon’s Den. So when I heard he would present an Entrepreneur’s Circle Celebrity Masterclass I knew I had to be there.
While driving through the snow from Leamington Spa to Birmingham, I felt excited to learn more about Nick’s Moonpig journey.
I’d previously thought Moonpig.com was an amazing success story. Little did I know they’d nearly gone bust.
Moonpig provides personalised greetings cards–it’s such a great product. It had a high gross margin. Payment up front. Paying suppliers in 60 days. It all looked great for Nick. But 4 years in, if something didn’t change they would go bust.
So what did Nick do?
He put their prices up, and not by a tiny percentage, but by a whopping 50%. From £1.99 to £2.99. They manned the computers in anticipation of a flood of emails. They were nervous about plummeting sales.
Can you guess what happened?
People just carried on buying, and only three complaints came in. Yes, that’s right. Only three complaints. As Nick said: “Once you know you have the right product, you need to sell it at the right price.”.
That single price increase helped turn Moonpig into a multi-million pound business.
Other nuggets of wisdom :
- Your company needs a good culture starting at the top.
- Hire good people and let them get on with their job. Look to keep them for 4-5 years, and do not micromanage them.
- Get a great understanding of numbers. Don’t leave your accountant to handle the numbers. You need to see monthly management accounts.
- Have your KPIs in front of you and understand the levers you can pull. Your conversion rates. Your CPA ( cost per customer acquisition).
- If you haven’t got much money for marketing then you must understand your website’s analytics. You can then polish your customer’s journey, and not leave money on the table.
During Nigel Botterill’s fascinating warm-up session (he’s the Entrepreneur’s Circle CEO), he showed us Facebook LeadCycle Ads that have worked and those that have struggled. It was a really insightful session with so many takeaways.
In a future talk I’d love Nigel to show us even more about how the ‘ad offer’ can increase/reduce the lead quality and make it easier/harder to close the sale — particularly for professional service companies.
Nigel also gave these juicy nuggets :
- It’s hard to get people’s attention. If they can look away, they will.
- Nobody’s getting your message because you’re too easy to ignore.
- People have options. Distractions. We have to raise our game.
- If you can get an ad to work on Facebook then you can interrupt people everywhere.
- One of the biggest mistakes of Facebook Ads is that too many people try to sell too early.
By the end of a wintry day, snuggled away in the depths of the Hilton, I felt that Nick Jenkins’ talk (and Nige’s warm-up) made this the most impactful celebrity masterclass yet.
Oh, and who could forget Nick’s Russian-Brummy.
Top marks EC.
Mark Reynolds is the founder of ProfitReach, an Adwords Management company getting your Google adverts & landing pages talking to your ideal customer like never before.